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UNIVERSITY OF GHANA

DEPARTMENT OF POLITICAL SCIENCE

MASTER OF PHILOSOPHY (MPHIL) POLITICAL SCIENCE

POLI 608: GOVERNMENT BUDGETING

COURSE OUTLINE AND READING LIST, SECOND SEMESTER, 2021-2022

LECTURER: PROFESSOR ATSU AYEE

LECTURE TIME: MONDAY, 2 PM – 4 PM

1. Course Objective

The aim of the course is to introduce students to the concept of government budgeting. Specifically, it deals with what a budget is about, the types of budgets (balanced, surplus and deficit), the qualities of a good budget, importance of the budget, the budgetary process, the institutional framework for budgeting in Ghana, the politics of budgeting, the public financial management system. It also examines budget reform strategies, fiscal decentralization and techniques and tools of budgeting such as line-item budgeting, Zero-Based Budgeting, mediumterm expenditure framework (MTEF), Activity Based Budgeting (ABB), Programme Based Budgeting (PBB) and Medium-Term Expenditure Framework.

2. Learning Objectives

The learning objectives of the course are at three levels, namely, knowledge, skills and behaviour.

3. Learning Outcomes

At the end of the course, students should be able to do the following:

• Define government budgeting.

• Describe the budget process.

• Appreciate the politics of the budget process.

• Identify the three types of the budget.

• Enumerate Ghana’s public financial management system, its strengths and weaknesses.

• Describe the institutional framework for the budget in Ghana • Describe the strategies for budget reform in Ghana • Describe the techniques and tools of budgeting.

• Make a prognosis of the future of government budgeting in Ghana.

4. Instructional Methodology

This class will use a seminar/workshop format and will meet for three hours once a week. It will comprise a combination of lectures, discussions, student presentations and term papers.

5. Evaluation

Seminar presentation by student - 25%

Term paper of 2,500 words on student’s choice of topic - 25%

Written Examination - 50%

Total - 100

COURSE OUTLINE AND READINGS

WEEK 1

Nature and scope of government budgeting: definitions, features and importance of the budget

Republic of Ghana, The Budget Operations Manual for Development of the National Budget. Prepared by the Ministry of Finance (Budget Division), n.d.

Kariuki, E. & K. Kiragu, “Public Expenditure Management” in L. Adamolekun (ed.) Public Administration in Africa: Main Issues and Selected Country Studies. 2^nd edn. Ibadan: Evans Brothers. Chapter 6.

Rubin, I.S. “New Directions in Public Budgeting”, in D.C. Menzel & H.L. White (eds.) The State of Public Administration: Issues, Challenges and Opportunities. London/New York: M.E. Sharpe, 2011. Chapter 9.

Hilton, R.M. & P.G. Joyce, “Performance Information and Budgeting in Historical and Comparative Perspective”, in B. Guy Peters & Jon Pierre (eds.) The Handbook of Public Administration. London: Sage, 2007. Chapter 20.

Kok, L. “Accrual Budgeting in a Comparative Perspective”, in B. Guy Peters & Jon Pierre (eds.) The Handbook of Public Administration. London: Sage, 2007. Chapter 21.

United Nations, Realizing Human Rights through Government Budgets. New York: Office of the United Nations High Commissioner for Human Rights (OHCHR). HR/PUB/17/2017.

Humado, C.K. “Pro-poor Policies and the Budget Process: The Role of Parliament/Parliamentarians – the Ghanaian Experience”, in Parliaments, Poverty and the Budget Process in Africa. Accra: Africa Poverty Reduction and Parliamentarian Centre, 2009.

Caiden, Naomi and Aaron Wildavsky. Planning and Budgeting in Poor Countries. New York: John Wiley and Sons, 1974.

OECD, OECD principles of budgetary governance. Available at:

http://www.oecd.org/governance/budgeting/draft-prin-ciples-budgetary-governance.pdf. (Accessed January 20, 2020)

United Nations, Realizing Human Rights through Government Budget. New York & Geneva: UN, 2017.

WEEK 2

Types of budget: strengths and weaknesses

Ipek, E.A.S. “New Approaches in Public Budgeting”, DOI: http://dx.doi.org/10.5772/intechopen.82371

Hou, Y. “Designing and Administering Revenue Systems”, in J.L. Perry & R. Christensen (eds.) Handbook of Public Administration 3edn. San Francisco, CA: Wiley, 2015. Chapter 23.

OECD, OECD principles of budgetary governance. Available at:

http://www.oecd.org/governance/budgeting/draft-prin-ciples-budgetary-governance.pdf. (Accessed January 20, 2020)

Republic of Ghana, The Budget Operations Manual for Development of the National Budget. Prepared by the Ministry of Finance (Budget Division), n.d.

Caiden, Naomi and Aaron Wildavsky. Planning and Budgeting in Poor Countries. New York: John Wiley and Sons, 1974.

United Nations, Realizing Human Rights through Government Budget. New York & Geneva: UN, 2017.

WEEK 3

The budgetary process or cycle: strengths and weaknesses

Republic of Ghana, The Budget Operations Manual for Development of the National Budget. Prepared by the Ministry of Finance (Budget Division), n.d.

Ipek, E.A.S. “New Approaches in Public Budgeting”, DOI: http://dx.doi.org/10.5772/intechopen.82371

Caiden, Naomi and Aaron Wildavsky. Planning and Budgeting in Poor Countries. New York: John Wiley and Sons, 1974.

WEEK 4

Institutional framework for budgeting in Ghana: issues, strengths and weaknesses

Republic of Ghana, Public Financial Management Act, Act 921, 2016. Accra: GPCL Assembly Press, 2016.

Republic of Ghana, Public Financial Management Regulations, LI2378, 2019. Accra: GPCL Assembly Press.

Republic of Ghana, The Budget Operations Manual for Development of the National Budget. Prepared by the Ministry of Finance (Budget Division), n.d.

Garnet, H & W. Plowden, “Cabinets, Budgets and Poverty: Political Commitment to Poverty Reduction”, in B. Levy & S. Kpundeh (eds.) Building State Capacity in Africa: New Approaches, Emerging Lessons. Washington DC: The World Bank, 2004, Chapter 5.

B. Dorotinksky & R. Floyd, “Public Expenditure Accountability in Africa: Progress, Lessons and Challenges”, in B. Levy & S. Kpundeh (eds.) Building State Capacity in Africa: New Approaches, Emerging Lessons. Washington DC: The World Bank, 2004, Chapter 6.

OECD. OECD principles of budgetary governance, http://www.oecd.org/governance/budgeting/draft-prin-ciples-budgetary-governance.pdf. (Accessed January 20, 2020).

Nicholas Adamtey, The Road to Budget Transparency in Ghana,

https://www.internationalbudget.org/wp-content/uploads/the-road-to-budget transparency-inghana-ibp-case-study-2017.pdf

WEEK 5

Ghana’s public financial management system: issues

Republic of Ghana, Public Financial Management Act, Act 921, 2016. Accra: GPCL Assembly Press, 2016.

Republic of Ghana, Public Financial Management Regulations, LI2378, 2019. Accra: GPCL Assembly Press.

Adamtey, N. (2017) The Road to Budget Transparency in Ghana,

https://www.internationalbudget.org/wp-content/uploads/the-road-to-budgettransparency-inghana-ibp-case-study-2017.pdf (accessed, 20/1/20)

Republic of Ghana, The Budget Operations Manual for Development of the National Budget. Prepared by the Ministry of Finance (Budget Division), n.d.

WEEK 6

Ghana’s public financial management system: strengths and weaknesses

Republic of Ghana, Public Financial Management Act, Act 921, 2016. Accra: GPCL Assembly Press, 2016.

Republic of Ghana, Public Financial Management Regulations, LI2378, 2019. Accra: GPCL Assembly Press.

Adamtey, N. (2017) The Road to Budget Transparency in Ghana,

https://www.internationalbudget.org/wp-content/uploads/the-road-to-budgettransparency-inghana-ibp-case-study-2017.pdf (accessed, 20/1/20)

Republic of Ghana, The Budget Operations Manual for Development of the National Budget. Prepared by the Ministry of Finance (Budget Division), n.d.

WEEK 7

Strategies for budget reform in Ghana

Republic of Ghana, The Budget Operations Manual for Development of the National Budget. Prepared by the Ministry of Finance (Budget Division), n.d.

Schick, A. “Twenty Five Years of Budgeting Reform”, OECD Journal of Budgeting, Vol. 4, No. 1, 2004, pp. 81-102.

OECD, Managing Public Expenditure: A Reference Book for Transition Societies. Paris: OECD, 2001.

WEEK 7

Fiscal decentralization in Ghana: issues, strengths and weaknesses

Institute for Fiscal Studies, “Fiscal Decentralization in Ghana: Progress and Challenges”. Prepared by the staff team of the IFS, led by Edna Osei (Research Analyst) June 2017. Discussion Paper No. 10, 2017.

Amoako-Asiedu, E. & K.A. Domfeh, “The Challenges of Central Government Fiscal and Financial Policies on Local Government Programmes in Ghana”. International Journal of African and Asian Studies, Vol. 26, 2016, pp. 32-40.

Dafflon, B & T. Madies (eds.) The Political Economy of Decentralization in Sub Saharan Africa. Washington DC: World Bank, 2013.

WEEK 8

Techniques and tools of budgeting: line item and zero-based budgeting

Republic of Ghana, The Budget Operations Manual for Development of the National Budget. Prepared by the Ministry of Finance (Budget Division), n.d.

Ipek, E.A.S. “New Approaches in Public Budgeting”, DOI: http://dx.doi.org/10.5772/intechopen.82371

Wildavsky, A. “A budget for all seasons? Why the traditional budget lasts,” Public Administration Review 38 (6), 1978: 501–509.

WEEK 8

Techniques and tools of budgeting in Ghana: activity-based budgeting versus programme based budgeting

Republic of Ghana, The Budget Operations Manual for Development of the National Budget. Prepared by the Ministry of Finance (Budget Division), n.d.

Ho, A.T-K., “Performance Budgeting”, in J.L. Perry & R. Christensen (eds.) Handbook of Public Administration 3edn. San Francisco, CA: Wiley, 2015. Chapter 22.

Schick, A. “The metamorphoses of performance budgeting,” OECD Journal of Budgeting, 13(2), 2013.

Wildavsky, A. “A budget for all seasons? Why the traditional budget lasts,” Public Administration Review 38 (6), 1978: 501–509.

WEEK 9

The politics of budgeting in Ghana

Killick, T. “The politics of Ghana’s budgetary system”, CDD/ODI Policy Brief No. 2, November 2005.

Republic of Ghana, The Budget Operations Manual for Development of the National Budget. Prepared by the Ministry of Finance (Budget Division), n.d.

Johnson, M. “Understanding the Real Budget Process: The Case of Ghana”, IFFRI Discussion Note # 029.

Wildavsky, A. The New Politics of the Budgetary Process. 2d ed. New York: Harper Collins, 1992.

WEEK 9

The political business cycle in Ghana

Iddrisu, A. G. & G.A. Bokpin, “Political business cycles and economic growth in Africa”, Journal of Economic Studies, Vol. 45 No. 4, 2018 pp. 760-772.

Kwankye, J.K. “Budget Discipline should be Entrenched in Ghana as a Policy Priority”, Legislative Alert, Vol. 21, No.1, August, 2014.

Republic of Ghana, The Budget Operations Manual for Development of the National Budget. Prepared by the Ministry of Finance (Budget Division), n.d.

WEEK 10

The future of government budgeting in Ghana

Killick, T. “The politics of Ghana’s budgetary system”, CDD/ODI Policy Brief No. 2, November 2005.

Republic of Ghana, The Budget Operations Manual for Development of the National Budget. Prepared by the Ministry of Finance (Budget Division), n.d.

Ipek, E.A.S. “New Approaches in Public Budgeting”, DOI: http://dx.doi.org/10.5772/intechopen.82371

SEMINAR TOPICS

1. What is government budgeting? What are its features, strengths and weaknesses?

2. Why is budgeting political?

3. Comment on the view that the budget is a contract between citizens and the state, showing how resources are raised and allocated for public services delivery.

4. Examine the linkages between obligations under international human rights law and budget policies and processes.

5. Examine the major types of budgeting.

6. Discuss the budgetary cycle in Ghana. Illustrate your answer with examples.

7. Examine the major reforms implemented over the years to improve budgeting in Ghana.

8. How effective is Ghana’s public financial management system? Give examples to illustrate your points.

9. Compare and contrast line-item budgeting and zero-based budgeting.

10. Compare and contrast activity-based budgeting and programme-based budgeting.

11. Comment on the strengths and weaknesses of the Medium-Term Expenditure Framework (MTEF) as practiced in Ghana. Give examples to illustrate your points.

12. Comment on the view that fiscal decentralization remains the Achilles heel of decentralization in Ghana.

13. How can the political business cycle be improved in Ghana?

14. Assuming you have been appointed the Minister of Finance of Ghana, examine some of the reforms you will introduce in the country’s budget statement and economic policy.

15. What do you think is the future of government budgeting in Ghana?